LIU STATEMENT ON CITY BANKING COMMISSION
City Comptroller John C. Liu stated the following in response to questions about his vote yesterday day at the New York City Banking Commission. Comptroller Liu voted against the proposed designated depository banks, because the Bloomberg Administration has failed to enforce the NYC Responsible Banking Act, which requires that the Mayor create a board to review banks' reinvestments in local communities:
"The Mayor has refused to follow local law, which requires the City to examine whether the banks it designates as depositories are reinvesting in underserved communities," Comptroller Liu said. "Depository banks receive billions of taxpayers' dollars, so we must ensure that they comply with our stated aim of enhancing their reinvestment in those communities. Because the Mayor has undermined the Responsible Banking Act by failing to appoint members to a Community Investment Advisory Board, we have no method for determining that compliance, and so we cannot approve any banks to serve as depositories for City funds today."
BACKGROUND:
The Banking Commission last approved the City's depository banks in May 2011. In June 2012, the NYC Council passed the Responsible Banking Act (RBA), overriding the Mayor's veto. The law stated that a Community Investment Advisory Board (CIAB) was to have been created within 60 days. In order to negate the effect of the law, the Mayor has refused to comply with the RBA's requirement that he appoint members to a CIAB that would review banks' performance in opening branches and investing in underserved and underfinanced neighborhoods. By failing to appoint members to the CIAB, the Mayor has kept the CIAB from meeting in order to fulfill its intended role, and effectively vetoed the City's RBA all over again.
In addition to Comptroller Liu, the Banking Commission consists of the Mayor and the Commissioner of Finance. The Department of Finance provides all administrative support for the Commission's work.